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Tokyo: Stocks open 1.34% higher

[TOKYO] Tokyo stocks opened 1.34 per cent higher on Wednesday following a positive lead from Wall Street where shares rose on easing concerns about China’s economy.

The benchmark Nikkei 225 index at the Tokyo Stock Exchange gained 230.16 points to 17,449.12, after a six-day losing streak through Tuesday. The Topix index of all first-section shares rose 1.44 per cent, or 20.22 points, to 1,422.17.

“It’s a relief,” Chihiro Ohta, general manager of investment information at SMBC Nikko Securities, told Bloomberg News. “We’ve fallen six days in a row, and we’re seeing signals flashing that Japanese stocks are falling too quickly. We’re at a level where we can expect a technical rebound.”

On Tuesday, stabilisation in China’s markets, including a firming of the yuan currency, sparked buying both in Europe and on Wall Street, after the worst ever opening week for a new year.

In Europe, Frankfurt and Paris indices rose 1.6 per cent and 1.5 per cent, respectively, with London not far behind with a gain of 1.0 per cent. On the forex markets, the dollar was at 117.86 yen in Tokyo on Wednesday morning, up from 117.66 yen in New York on Tuesday.

The euro fell to US$1.0833 and 127.70 yen from US$1.0858 and 127.76 yen.